Introduction:
Shares of the FMCG company hit a 20% lower circuit limit at ₹12.42 on December 6, 2024, following SEBI’s investigation into alleged financial mismanagement, fictitious transactions, and misappropriation of funds, leading to a ban on key executives.
Share Price movement of Mishtann Foods:
On December 6, 2024, shares of the Mishtann Foods (BSE:MISHTANN) opened at ₹12.42, hitting a 20% lower circuit limit. The price remained unchanged throughout the session, reflecting a 20% decline from the previous close of ₹15.52, with a market cap of ₹1338.40 crore.
Mishtann Foods share price fell:
Shares of Mishtann Foods hit the 20% lower circuit limit at ₹12.42 on December 6, 2024, after SEBI banned the company’s MD and others for alleged financial mismanagement. SEBI’s investigation revealed issues like fictitious transactions, negative cash flow, and corporate governance lapses.
The capital markets regulator barred Mishtann Foods Ltd from raising public funds and prohibited 12 entities, including the company’s promoter and CFO, from associating with listed entities or SEBI-registered firms. SEBI’s investigation found ₹47.10 crore misappropriated, linked to fictitious sale and purchase transactions.
SEBI noted a drastic increase in the number of Mishtann Foods’ public shareholders from 516 in FY18 to 4.23 lakh by September 2024. This raised concerns of potential manipulation, especially following a failed ₹150 crore rights issue in May 2023 and a later misappropriated ₹49.9 crore rights issue.
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Recent news About Mishtann Foods:
Mishtann Foods recently announced plans to expand its product portfolio by introducing ready-to-cook meal options, targeting urban consumers. This strategic move aims to diversify offerings and strengthen its presence in the growing convenience food segment, enhancing market competitiveness and brand reach.
Stock performance of Mishtann Foods for Period of 1 week, 6 months and 1 year:
Over the past week, the stock of the FMCG company has gained 10.1%. However, its performance over the last six months shows a decline of 3.06%. Over the past year, the stock has seen a modest return of 0.32%.
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Shareholding pattern of Mishtann Foods:
| Summary | Sep-24 | Jun-24 | Mar-24 |
| Promoter | 43.50% | 46.90% | 48.40% |
| FII | 5.60% | 2.80% | 5.00% |
| DII | 0% | 0% | 0% |
| Public | 50.90% | 50.30% | 46.60% |
About Mishtann Foods:
Mishtann Foods Ltd is a prominent food manufacturing company specialising in high-quality sweets and snacks. With a focus on innovation and customer satisfaction, the company caters to diverse tastes, ensuring sustainable growth and a strong presence in the competitive food industry.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
